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AGENCY REVIEW A LOOK AT THE GSES' LATEST DELINQUENCY NUMBERS AND TOP HEADLINES 5.59% fannie single family freddie single family 5.07% November 2012 fannie » 3.30% freddie » 3.25% 4.55% 4.03% 3.51% 3.00% 2.48% note: Delinquent loans reported here include all single-family loans 90 or more days past due as a percentage of portfolio size. Historical data covers a moving 12-month period. Source: Fannie Mae November 2012 Monthly Summary and Freddie Mac November 2012 Monthly Volume Summary 1.96% 1.44% 0.92% 0.40% /12 /12 11 /12 10 /12 09 08 /12 /12 07 /12 06 05 /12 /12 04 /12 03 /12 02 01 /11 /11 12 /11 /11 11 10 /11 09 /11 08 /11 07 /11 06 /11 05 04 /11 /11 03 /11 02 01 /10 /10 11 12 GSEs' Refis and Foreclosure Prevention Actions Maintain Strong Pace In the third quarter of last year, Fannie Mae and Freddie Mac completed about 134,200 foreclosure prevention actions, according to a report from the Federal Housing Finance Agency (FHFA). Of that total, 62,500 were loan modifications, nearly half of which reduced borrowers' monthly payments by more than 30 percent. Most modified loans in the GSEs' portfolios are performing successfully. FHFA reported that less than 15 percent of borrowers who received a modification in Q 4 2011 missed two or more payments as of September month-end. Overall, since the start of their conservatorship in September 2008, the GSEs have completed 2.5 million foreclosure prevention actions. More than 2.3 million of those actions allowed borrowers to stay in their homes, including 1.3 million loan modifications. 24 FHFA's report also included data on home forfeiture actions. In Q 3 2012, the GSEs completed nearly 38,000 short sales and deeds-in-lieu of foreclosure, representing an increase of 4 percent from the previous quarter. Over the first nine months of 2012, short sales and deeds-in-lieu totaled 108,800. The number of delinquent borrowers with GSE-backed loans fell 9 percent over the first nine months of 2012. FHFA's report noted a "substantial number" of delinquent borrowers are "deeply delinquent," meaning past due by at least 365 days. As of September 30, 2012, more than half of seriously delinquent borrowers—those past due by at least 90 days—were behind on their payments by at least a year. FHFA says 29 percent of the GSEs' deeply delinquent borrowers are in Florida. Fannie Mae and Freddie Mac acquired 62,186 REOs over the July-to-September period but disposed of 66,585. By the end of Q 3 2012, the GSEs held 158,138 REOs in their inventory, down from 162,537 in Q2 and 182,212 in Q 3 2011. As of the end of October, Fannie and Freddie refinanced 790,619 loans during the 2012 calendar year through the Home Affordable Refinance Program (HARP). Since HARP's 2009 inception, the program has refinanced 1.8 million loans. In October alone, more than 81,613 homeowners were refinanced through the program, slightly lower than September when 90,789 loans were refinanced. In October 2011, however, YTD HARP refinances stood at 33,565. FHFA attributed the 2012 surge in HARP refis to two factors: the low-mortgage rate environment and HARP program changes, one of which extended eligibility by removing the 125 percent loan-to-value (LTV) cap. Nearly half—45 percent—of the loans refinanced in October were underwater, meaning they had LTVs greater than 105 percent. Nearly one-fourth, or 23 percent, had LTVs greater than 125 percent. HARP refinances are especially popular in hard-hit states. Nationwide, HARP accounted for 19 percent of the GSEs' total refinance volume in October, but in Nevada, HARP made up 57 percent of refis over the same month. In Arizona and Georgia, HARP represented 40 percent of October's refinance volume, and in Florida it was 48 percent. In Nevada, Arizona, and Florida, underwater borrowers accounted for at least 67 percent of HARP refinances. STAT INSIGHT GSEs' share of the $1.4 trillion in RMBS issued in the first 10 months of 2012 as private-label investors remained sidelined by ongoing regulatory concerns. Source: Deloitte Center for Financial Services

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